5G network slicing – the virtualizing of networks on a shared physical infrastructure for specific use cases – will be a $66 billion market by 2026, according to a 5G network slicing revenue forecast from ABI Research.
It is a transformational opportunity in verticals such as manufacturing, logistics and transportation. “Industrial segments such as manufacturing, logistics, and automotive are pursuing digitalization and automation with vitality and substantial investments,” said ABI Senior Analyst Don Alusha in a press release. “5G network slicing aims to serve as a stepping stone to drive productivity growth and enable the high-performance connectivity that underpins the dynamic, secure, and reliable interconnection of industrial systems and machinery.”
The firm suggests that it won’t be easy to reach that goal, however. It will require mobile service providers “stepping out of their comfort zone.” Among the requirements will be to radically” improve their outreach to enterprise verticals,to engage in proof of concept projects, to enter into new brand partnerships and to create customized solutions for the verticals they target, ABI says.
5G Network Slicing Revenue Forecast
The report, entitled “5G Network Slicing and Industry Verticals,” says that network slicing in manufacturing will create $32 billion of value in 2026 and enjoy a compound annual growth rate (CAGR) of 96% through that year. The logistics sector is the second most promising market. It will increase from $65 million in 2019 to $20 billion in 2026, a CAGR of 127%. Telefonica, BT and Deutsche Telekom already are active, ABI says.
The virtualization of networking is perhaps the most important development in telecommunications of the past quarter-century. In various ways — from creating far more efficient and resource-aware options to centralizing management for more agile operations to business continuity/disaster recovery options — networks are being radically changed and made responsive to end users’ needs. 5G network slicing is a potent example of this trend.